Delta Assembly Approves N10b Loan For Okowa

BEVERLY HILLS, June 23 (THEWILL) –  The Delta State House of Assembly has approved Governor Ifeanyi Okowa's request to obtain a N10 million bond from Zenith Bank of Nigeria Plc. The Assembly unanimously approved the bond at Tuesday's plenary after the governor's letter was read.

The governor's request, which was contained in a letter titled “Restructuring of Existing Loan Facilities and Offer of N10 Billion Term Loan by Zenith Bank PLC,” dated June 22, 2015, was read to members of the Assembly by the Speaker, Rt. Hon. Monday Igbuya.

In the letter, Okowa said his administration inherited huge debts from banks and the capital market of N96.62 billion, with a scheduled monthly repayment of N4.6 billion, in addition to the monthly repayment of the state's infrastructure development bond of N50 billion obtained in 2011.

Constrained by the huge debt and in order to free resources for other purposes, the governor told the Assembly that the administration would have to resort to the bank, which has offered to restructure the state's loan facilities and that of the House of Assembly.

“The restructuring of the existing facilities and acceptance of the N10 billion term loan will mitigate the harsh impact of the liquidity crisis, reduce time lag in payment of salaries, pensions and overhead costs as well as ensure that take off of some key projects germane to the agenda of this administration,” Okowa wrote.